Core Viewpoint - There is a significant disparity between market perception and the actual fundamental performance of AutoZone as it approaches FY26, with positive trends in commercial momentum, DIY sales, and international performance [1]. Group 1: Market Perception vs. Fundamentals - The market perception of AutoZone does not align with its underlying fundamentals, indicating potential mispricing or misunderstanding by investors [1]. - Commercial momentum is reportedly gaining traction, suggesting a positive outlook for AutoZone's business operations [1]. - DIY sales continue to perform well, contributing to the overall strength of AutoZone's market position [1]. Group 2: International Performance - International operations are showing improvement, which may enhance AutoZone's growth prospects and diversification [1].

Core Insights - There is a significant divergence between market perception and the actual fundamental performance of AutoZone (AZO) as FY26 approaches [1] - Commercial momentum is increasing, DIY segments are performing well, and international operations are showing improvement [1] Company Performance - AutoZone is experiencing positive trends in commercial momentum and DIY sales, indicating strong operational performance [1] - International operations are outperforming expectations, contributing to the overall growth of the company [1] Market Perception - The market's perception of AutoZone does not align with the underlying fundamentals, suggesting potential mispricing or misunderstanding among investors [1]

Core Viewpoint - AutoZone, Inc. (NYSE:AZO) is experiencing resilient demand and improving long-term earnings power, leading to a bullish outlook from JP Morgan analyst Christopher Horvers, who maintains an Overweight rating with a price target of $4,850 [1]. Demand and Comp Trends - Recent industry checks indicate no structural slowdown in DIY demand, despite some early-quarter volatility, with better weekend spending and supportive weather contributing to restored momentum [3]. - The analyst expects both DIY and "Do It For Me" (DIFM) comparable sales to accelerate, driven by firmer inflation, steady demand, and market share gains [3]. - Management anticipates mid-single-digit inflation in the near term, rising to high-single-digit levels by spring [3]. Margins, Costs, and Earnings Power - The gross margin outlook has been trimmed due to softer merchandising benefits and persistent mix pressure, with last year's LIFO impact creating a significant headwind [4]. - Management expects another large LIFO headwind early in the year, with easing pressure anticipated later, while the underlying gross margin is expected to remain flat to slightly higher, excluding LIFO effects [4]. - The SG&A outlook reflects faster store-level cost growth associated with higher comparable sales and expansion efforts, aligning with management's strategy to defend market share and support new locations [5]. Earnings Outlook - The changes in cost structure and market dynamics are expected to lead to a modestly higher operating margin and a slightly stronger EPS forecast, suggesting a potential positive shift in the earnings revision cycle [5]. - Rolling estimates forward is anticipated to enhance out-year earnings power as sales accelerate and LIFO effects reverse [6].

AutoZone, Inc. (NYSE:AZO) shares were little changed Wednesday as investors digested a fresh bullish call from JP Morgan.Analyst Christopher Horvers stuck with an Overweight rating and higher estimates, citing resilient demand and improving long-term earnings power.Horvers reiterated the rating, with a price forecast of $4,850.Also Read: AutoZone’s Domestic ‘Do It For Me’ Business Driving Market Share GainsHorvers said he raised near-term estimates after stronger comparable performance, though lower gross m ...

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Past performance is not an indicator of future performance. This post is illustrative and educational ...

Company Overview - AutoZone, Inc. is headquartered in Memphis, Tennessee, operating approximately 7,353 stores and is a leading retailer and distributor of automotive parts for various vehicle types. The company has a market capitalization of around $65.7 billion, indicating its large-cap status and extensive customer base supported by a robust digital and commercial distribution network [1]. Business Ecosystem - The company's ecosystem includes autozone.com for retail customers, autozonepro.com for commercial buyers, ALLDATA repair and shop-management software, and detailed product resources available through duralastparts.com [2]. Stock Performance - AZO shares are currently trading 12.8% below their September high of $4,388.11, reflecting near-term pressure, with a decline of 8.5% over the past three months, contrasting with the Nasdaq Composite's 10% gain [3]. - Despite recent pressures, AZO's long-term trend remains strong, with a 20.4% increase over the past 52 weeks, closely aligning with the Nasdaq's 20.7% advance. Year-to-date, AZO is up 19.5%, nearly matching the Nasdaq's 21.3% rise, showcasing the company's competitive momentum [4]. Moving Averages - The stock has remained below its 50-day moving average of $3,935.71 since mid-October, with a brief lift at the end of November. It dipped below the 200-day moving average of $3,818.27 during this period but regained it by the end of November, indicating strengthening buying interest and early signs of trend stabilization [5]. Margin Pressures - On December 2, AZO shares declined nearly 3.1% after Morgan Stanley highlighted margin pressures due to tariffs and rising operating expenses. The firm noted that increased costs from imported goods and higher SG&A spending could challenge near-term profitability, although long-term industry trends remain favorable for AutoZone [6]. Growth Segments - In Q4 fiscal 2025, AutoZone's commercial segment outperformed retail growth, driven by better inventory availability and faster delivery. Market share gains, favorable weather, and ongoing expansion in Mexico and Brazil helped mitigate tariff-driven costs and a non-cash LIFO charge. These factors have bolstered management's confidence, prompting continued investment in stores, inventory, and technology to sustain long-term momentum [7].

Core Viewpoint - The market anticipates AutoZone (AZO) to report a year-over-year decline in earnings despite higher revenues in its upcoming earnings report for the quarter ended November 2025 [1] Earnings Expectations - AutoZone is expected to post quarterly earnings of $32.35 per share, reflecting a year-over-year change of -0.5% [3] - Revenues are projected to reach $4.64 billion, which is an increase of 8.3% from the same quarter last year [3] Estimate Revisions - The consensus EPS estimate has been revised 0.59% higher in the last 30 days, indicating a positive reassessment by analysts [4] - The Most Accurate Estimate for AutoZone is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +2.26% [12] Earnings Surprise Prediction - A positive Earnings ESP is a strong indicator of a potential earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [10] - AutoZone currently holds a Zacks Rank of 3, suggesting a likelihood of beating the consensus EPS estimate [12] Historical Performance - In the last reported quarter, AutoZone was expected to post earnings of $50.52 per share but delivered $48.71, resulting in a surprise of -3.58% [13] - The company has not beaten consensus EPS estimates in any of the last four quarters [14] Conclusion - While AutoZone is viewed as a compelling earnings-beat candidate, other factors should also be considered when evaluating the stock ahead of its earnings release [17]

Core Viewpoint - AutoZone, Inc. (NYSE:AZO) is recognized as one of the best consumer cyclical stocks, with strong performance in the aftermarket auto parts distribution sector, particularly in the do-it-yourself (DIY) market [1][3]. Analyst Ratings - As of November 28, 19 out of 27 analysts rated AutoZone, Inc. (NYSE:AZO) shares as Buy, with four analysts giving a Strong Buy rating. The average price target for the shares is $4,579.13 [2]. Recent Analyst Actions - On November 13, Goldman Sachs upgraded AutoZone, Inc. (NYSE:AZO) from Neutral to Buy, raising the price target from $4,090 to $4,262, citing the company's scale advantages and strong DIY market performance [3]. Financial Performance - In the fiscal fourth quarter, AutoZone, Inc. (NYSE:AZO) reported a 2.2% growth in domestic DIY same-store sales, indicating a positive trend in market share growth [4]. Market Insights - CFO Jamere Jackson noted that AutoZone, Inc. (NYSE:AZO) is gaining market share in the domestic DIY sector, while CEO Philip Daniele highlighted that lower-income consumers are still under pressure, affecting discretionary merchandise sales [4].

Core Insights - AutoZone, Inc. operates as a retailer and distributor of automotive replacement parts and accessories, with a market cap of $64.1 billion [1] - The company has shown strong stock performance, gaining 24.3% over the past year, significantly outperforming the S&P 500 Index's 11% increase [2] - AZO's performance is also superior to the SPDR S&P Retail ETF, which has declined by 1.8% over the same period [3] Financial Performance - In Q4, AutoZone reported an EPS of $48.71, which missed Wall Street expectations of $50.52, while revenue of $6.24 billion exceeded forecasts of $6.22 billion [5] - For the fiscal year ending in August 2026, analysts project a 4.5% growth in EPS to $151.32 on a diluted basis [5] Market Position and Strategy - The company's strong performance is attributed to effective execution in retail and commercial channels, with commercial sales outpacing retail growth [4] - AutoZone has gained market share and expanded internationally in Mexico and Brazil, despite facing margin pressures from tariffs and a non-cash LIFO charge [4] - Management remains optimistic about long-term growth, focusing on investments in stores, inventory, and technology [4] Analyst Consensus - Among 28 analysts covering AutoZone, the consensus rating is a "Strong Buy," with 22 "Strong Buy" ratings, two "Moderate Buys," three "Holds," and one "Strong Sell" [6]

Core Points - AutoZone, Inc. will hold its Annual Meeting of Stockholders on December 17, 2025, at 9:00 a.m. (ET) in Memphis, Tennessee, with a webcast available on its website [1] - As of August 30, 2025, AutoZone operates a total of 7,657 stores, including 6,627 in the U.S., 883 in Mexico, and 147 in Brazil [2] - AutoZone is the leading retailer and distributor of automotive replacement parts and accessories in the Americas, offering a wide range of products for various vehicle types and providing commercial sales programs [3] Company Overview - AutoZone's stores carry an extensive product line, including new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products [3] - The company does not generate revenue from automotive repair or installation services, focusing instead on parts and accessories sales [3] - AutoZone also sells products through its websites, including www.autozone.com for retail and www.autozonepro.com for commercial customers, along with diagnostic and management software through www.alldata.com [3]